LONDON/Dubai (AP) – OPEC has prompted to mention their members not to oil prices, if policy in a break with the past to discuss that. the Group of oil-producing to try to avoid the risk o f US action on manipulation of the market, said sources close to OPEC.
file photo: the logo of the Organization of Petroleoum of exporting countries (OPEC) is to see headquarters in Vienna the OPEC 19 June 2018. REUTERS/Leonhard Foeger / file photo
proposed US legislation, known as the “NOPEC”, which could open up to anti-trust claims the Group was long with former American President that signal, that any movement to make a veto Insert would dormant, right.
but President Donald Trump has been a vocal critic of the Organization of petroleum exporting countries, the blame for high oil prices and it urges hovering to improve performance to a market to relieve four-year highs.
OPEC and its unofficial leader, Saudi Arabia, nervous, which could mean it for NOPEC, or no oil producing and exporting cartels Act has made.
to discuss decision giving preferred oil price level refrain from–the Group accompanying a way market expectations–stresses such as Trump aggressive attitude on the oil market, OPEC is disturbing and test relations between allies Riyadh and Washington.
in July visited the OPEC officials a workshop in Vienna with international make law firm to discuss white & case NOPEC Bill, and the lawyers advised public discussion to avoid oil prices and prefer to talk about the stability of the oil market , two sources familiar with the matter said.
OPEC officials were also recommended to try diplomatic lobbying way and prevent the NOPEC Bill law said to explore one of the sources.
on August 1, the OPEC Secretariat in a letter to the Ministers a similar recommendation.
“we solemnly believe that market stability and not the prices, is the common goal of our actions” UAE energy Minister Suhail al Mazroui, who wrote the rotating Chair holding OPEC this year, in the letter, seen by Reuters.
“I would ask like, to refrain from OPEC countries, as well as our participating non-OPEC colleagues any reference to prices in her comments about our joint efforts or oil market condition,” he added.
white & case did not respond to a Reuters request for comment.
not the only way that OPEC trying to control the market is oil prices. By cutting production to support prices and through the increase of stocks it can do the opposite, for example.
but the private coordination of communication OPEC message to the market represents a departure from previous practice, if Saudi Arabia often a preferred price level at the talk about OPEC policy signal and measures to enforce seek to achieve.
while opportunities consist of the law this year appear slim, concerns about the growing OPEC members and other oil producers, that’s ultimately the support of Trump, given his open criticism of OPEC and high oil prices can get.
the OPEC letter came two months before US-Saudi relations were further strained a Saudi journalists during a visit to the Kingdom disappeared Consulate in Istanbul.
Turkish officials say they believe Jamal Khashoggi, a critic of the Saudi policy was murdered and his body away. Saudi Arabia has strongly denied killing Khashoggi.
some members of the US Congress, which has long had a testy relationship with Saudi Arabia, have criticised the Kingdom over the case.
A Senate source with the Bill said renewed interest in NOPEC likely disappear as a legislator all actions in response to Khashoggis weigh.
rejected the source, which will be named, said that with the lawmakers out of town for the next few weeks, it was difficult to measure current mood.
over much of the last year, Saudi Arabia can
process risks behind IPO Washington annoyed by pressing OPEC oil prices in a shift from his previous measures, to increase more moderate stance.
industry sources have this shift on the desire to maximize revenue and assessment of State energy coupled giant Saudi Aramco before a planned initial public offering an integral part of the Crown Prince Mohammed bin Salman Reforms, diversification of the economy.
the proportion expected was float, some worth up to $100 billion, on ice placed, sources have told Reuters news agency.
Prince Mohammed said this month the float was postponed until 2021, and several industry sources say that the delay was partly because of the litigation risks of Aramco in New York, a favourite spot of the Saudi Crown Prince was listed.
“there is a great fear NOPEC could turn into another JASTA,” said one of the sources familiar with Aramco IPO preparations, referring to the judiciary against sponsors of terrorism Act which victims of the September 11, 2001, attacks, in Riyadh to Sue.
Saudi Arabia, participation in the attacks deny, had long broad immunity against the accusations. This changed in the year 2016, when the US Congress President Barack Obama overrode veto of the JASTA.
with close to $1 trillion in investments in the United States, including the assets owned by Aramco, Riad has a lot to lose, if the NOPEC Bill as a law was adopted.
The State immunity would revoke
it which oil producers, including OPEC members, currently of the U.S. complaint enjoy.
Washington-based law firm Gibson Dunn and the Saudi Embassy there contract an end of August, according to a copy of the contract the U.S. Department of Justice filed.
outlines the contract which would be in addition to its other responsibilities, Gibson Dunn “to NOPEC”.
Saudi Energy Minister Khalid al-Falih about NOPEC has also Energy Secretary Rick Perry in non-public meetings concerns with senior US officials, said two sources familiar with the talks of Reuters, on condition of anonymity.
more coverage by Jarrett Renshaw in New York and Yara Bayoumy in Washington; Editing by Mike Collett white